Exam 9: Wage and Benefit Issues in Bargaining

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Private sector employers are ultimately interested in increasing workers' power.

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Which characteristics of grade structures must be negotiated?

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Several characteristics of grade structures must be negotiated.First,the parties would need to decide how many grades would be in the structure.Second,they would have to decide which jobs to assign to which grades.Third,they would have to determine differences in pay between grades.And fourth,they would have to decide the minimum and maximum pay rates an employee could earn within a pay grade.

Takeovers of unionized firms result in higher shareholder return compared with takeovers of nonunion employers.

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When does external equity demand in wages arise?

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What is an industrial effect of unions on pay level?

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Why do unionized firms have higher skill levels than nonunionized firms?

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When the economy is strong,a profit-making capital-intensive firm can avoid wage increase.

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Aaron,an employee at a manufacturing company,earns $18 an hour.If the company agrees to a new wage contract,Aaron will be paid $18.72 an hour.What is the percentage of wage increase the company must agree to?

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A car manufacturing company wants to lower wage costs through decreased starting rates for new hires.Which pay structure should it implement?

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In a national sample of employees,those who moved from nonunion to union employment had more equal wages.

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What causes dissatisfaction in the two-tier pay plan?

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Cost-of-living adjustment is intended to maintain parity between wages and profits over time.

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In the short run,union wages are insensitive to changes in the unemployment rate compared to wages in the nonunion sector.

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Health insurance benefits are:

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When is an employer more likely to implement a grade structure?

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Explain the bonus formula in Impro-Share with an example.

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In two-tier pay plans,when does the employer benefit most?

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If an employee selects a pension plan in which a fixed percentage of profit is allocated to each employee in proportion to his/her proportion of total employee pay in that employee group,which pension plan did he/she select?

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What is union's effect on the pay system?

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Why do employers currently choose the 401(k),401(a),or 403(b)plan rather than a traditional defined benefit pension plan?

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